Regardless of whether or not your car is high performance, you have a desire to cancel your insurance. The question of doing it right is a question that many who cancel their insurance must ask. If you don’t do it right, or if you just jump into it haphazardly, then you could hurt yourself financially in the long run.
It doesn’t matter what the reason is. You could be moving to another state, getting rid of your vehicle, or perhaps you just aren’t happy with the coverage that your provider is giving you. There are a number of things that you are going to need to understand so that your decision doesn’t end up coming back and haunting you.
First of all, it is best to issue a formal notice. Your policy may say that you don’t have to, but giving written notice of your intent to cancel is always recommended and advantageous. You need to tell them that you are canceling and what date you would like to cancel. Most policies permit a person to cancel whenever they want so long as they’ve given notice. One thing to remember though is that your policy might still be in effect at the end of the term.
If you assume, and many people do, that the policy will end when the term does, there are two things that are bound to happen, which are not in your favor. First of all, your insurer keeps billing you. The second thing is that when you fail to pay, your insurance will end. The only difference between it ending on a good note or a bad note, is how it affects your credit rating. If you fail to give notice, you will certainly have a negative mark on your your credit history.
Don’t make any assumptions about your insurance company, despite what they might tell you. Yes, your high-performance car insurance mighty very well be canceled as soon as you don’t pay, but what will it do to your credit. Always make a formal notice!
A sudden cancellation will also raise what is known as a red flag when you are trying to get on with another insurance company. They’ll assume you are high risk, and they will charge a much higher premium. Cancellation notices are serious business.
Changing Insurance Carriers
If you wish to retain the same vehicle, but want to go to a different high-performance car insurance provider, then make sure that you have insurance the day your other insurance is canceled. You don’t want to end up in a car accident without insurance. This is never a good situation.
Cancelling your high-performance car insurance may be inescapable. At some point, you’d find one or more reasons to want to cancel an existing policy. Just remember that to avoid any negative impact on you and your financial future, be considerate. Allow your insurance company enough period of notice and go through the process of making the termination official. It’s the only way you can avoid trouble from a cancellation, now or in the future.